Overview
Over the last few decades starting a trading company in Dubai has shown remarkable growth, providing beneficial investment to foreign investors. Dubai is continuously topping as a major destination for starting a business due to its great infrastructure, complete ownership, availability of various freezone, mainland, and offshore business structures, tax exemptions, and easy business setup process.
If you want to set up your dream business in Dubai, this guide will help you find out the step-by-step process, document requirements, and business activities to establish a successful general trading company in Dubai.
Why start a trading company in Dubai?
Dubai earned the title of the ‘City of Gold’ due to its diversified economy which includes industrialization, manufacturing, trade, tourism, and many more. The top reasons for registering a general trading company in Dubai are listed here:
Strategic Location
Dubai is globally known as a trading hub, offering a favorable geographical location for trading all across the world. The strategic location of the city connects Asia, Africa, and European parts for running international business activities.
Great Economy
Trading in Dubai is run through a well-maintained and served ecosystem. The government of Dubai gives importance to trading activities to promote upliftment and diversified growth.
Trade Rules
The major reason entrepreneurs prefer to start a general trading company in Dubai is the appealing trading rules and policies of the country. The government of Dubai has enhanced market access for products through multilateral and bilateral trade liberalization and implemented smooth trading policies in the region.
Huge Tax Benefits
The tax advantages for general trading in Dubai include international trading partners and double taxation agreements, reducing tax liabilities for importers and exporters. Dubai encourages trading in the country and creates several tax benefits for the traders. To initiate innovative and ground-breaking measures, Dubai has several agreements with multiple international trading partners that prevent entrepreneurs from ‘double taxation’.
Key Steps to Start a Trading Company in Dubai
The process of starting a trading company in the UAE can be divided into four simple steps that are detailed here:
Step 1: Create a Business Plan
Firstly, you need to develop a strong business plan for establishing a general trading LLC Dubai. It includes considering some essential factors such as market conditions, products and activities, number of employees, office space, initial investments, financing, and more. Considering these factors ensures your successful business setup in Dubai.
Step 2: Select a Jurisdiction
The business market of Dubai is mainly classified into three jurisdictions: Freezone, Mainland, and Offshore.
Currently, there are around 48 freezones in Dubai that provide 100% ownership and tax exemption to foreign investors. In Dubai mainland you need to find a local sponsor who will hold 51% shares of the business. Dubai offshore companies allow you to run trading activities in different countries from the residence country. Choose the right jurisdiction with the help of a business setup consultancy in the UAE.
Step 3: Find a Local Sponsor
Identify the right local sponsor for your business who will hold 51% shares in your trading company in Dubai. A local sponsor in the UAE is a business sponsor that should be a UAE national. Find the best local sponsor with us.
Step 4: Complete Legal Formalities
Getting your general trade license is important to make your business legal in Dubai and the UAE. The general type trade license allows your business to sell, store, import, export and distribute a wide range of products. The general Dubai trading license activities include the following:
- Import & Export.
- Retail store.
- Online selling.
- Trading multiple products.
- Medical products
Entrepreneurs need to submit the following documents to operate a trading business in Dubai:
Passport copies of all partners
- Passport-size photos of candidates in compliance
- MOA and LSA agreements
- Trade name registration letter
- Office/warehouse tenancy contract
- NOC letter from current service agent
We have identified that starting a general trading company in Dubai offers potential profits to foreign investors such as tax savings, global connectivity, business-friendly policies and economic stability.
Here we have discussed the core benefits and key steps to start a trading business in the UAE, including developing a business plan, selection of jurisdiction, finding a local sponsor and completing legal processes.
Register Your Trading business in Dubai with Us
Arab Business Consultants is a leading business setup consultancy, helping businesses to conquer their Dubai business dream. Our team of experts possess the updated knowledge of rules and regulation required for starting a company in Dubai. With our years of experiences and industry practices we offers the best PRO services, VAT registration services, Business consulting and Local sponsor services.
